By Larry Dandridge
This article will introduce VA home loan programs for surviving spouses.
The first article in this series of five was published on March 16, and covered VA healthcare, education, training, and employment benefits for spouses, dependents, survivors, and family caregivers. You can read Part 1 at http://bit.ly/3TOYiSE.
The two best ways to find out what a veteran’s spouse, dependent, survivor, and family caregiver VA benefits are and how to apply for those benefits include:
1. Reading the VA’s webpage titled VA Benefits for Spouses, Dependents, Survivors, and Family Caregivers found at https://www.va.gov/family-member-benefits/ and …
2. Asking a VA-trained and accredited Veterans Service Officer (VSO). Read about VA Accredited Representatives and how to find one at https://www.benefits.va.gov/vso/, https://www.va.gov/ogc/accreditation.asp, and https://scdva.sc.gov/county-veterans-affairs-offices.
According to the VA, the spouse or dependent child of a veteran or service member may qualify for benefits, like home loans, health care, life insurance, or money to help pay for school or training. The survivor of a veteran or service member may qualify for added benefits, including help with burial costs and survivor compensation. A family caregiver of a veteran may also be eligible for support to help them better care for the veteran — and for themselves.
VA Home Loan Programs for Surviving Spouses
Read details about home loan programs for surviving spouses at https://www.va.gov/housing-assistance/home-loans/surviving-spouse/. A surviving spouse will need to get from the VA a Certificate of Eligibility (COE) to show their lender that they qualify for this benefit. Spouses will also need to meet their lender’s credit and income requirements to get a loan. A surviving spouse may be able to get a COE if they are the spouse of a veteran, and at least one of the descriptions below is true for them.
– The veteran is missing in action (MIA) or
– The veteran is a Prisoner of War (POW) or
– The veteran died while in service or from a service-connected disability and the spouse did not remarry or
– The veteran died while in service or from a service-connected disability and the spouse did not remarry before he or she was 57 years old or before December 16, 2003, or
– The veteran had been totally disabled and then died, but their disability may not have been the cause of death (in certain circumstances).
A surviving spouse who remarried before December 16, 2003, and on or after their 57th birthday, must have applied no later than December 15, 2004, to establish loan eligibility.
How to apply for a COE
This depends on whether or not the spouse is receiving Dependency & Indemnity Compensation (DIC).
Receiving DIC
If a spouse is receiving DIC benefits, they will need to fill out a Request for Determination of Loan Guaranty Eligibility — Unmarried Surviving Spouses (VA Form 26-1817). The form is available online at https://www.va.gov/find-forms/about-form-26-1817/. The spouse will also need the Veteran’s DD214 if available. Veterans and their next of kin can obtain free copies of their DD214 (Report of Separation) and a copy of the veteran’s Official Military Personnel File by following the directions at the National Archives website https://www.archives.gov/veterans/military-service-records.
The spouse will need to submit the form and discharge or separation papers to their lender for processing online, or to the VA Regional Loan Center that serves the spouse’s state. Find a Regional Loan Center at the VA Home Loans webpage https://www.benefits.va.gov/HOMELOANS/contact_rlc_info.asp. Get answers to questions about the VA-guaranteed home loan program by contacting a VA home loan representative at 1-877-827-3702.
Not receiving DIC benefits
If a spouse is NOT receiving DIC benefits, they will need to first fill out an Application for DIC, Survivors Pension, and/or Accrued Benefits (VA Form 21P-534EZ). Find the form and instructions at https://www.va.gov/find-forms/about-form-21p-534ez/. The spouse will also need the Veteran’s DD214 if available, a copy of their marriage license, and the veteran’s death certificate.
Veterans and their next of kin can obtain free copies of their DD214 (or other separation documents) and a copy of the veteran’s Official Military Personnel File by following the directions at the National Archives website, which is found at https://www.archives.gov/veterans/military-service-records.
The spouse will need to submit the form and documents to the VA pension management center that serves their state. See https://www.va.gov/pension/pension-management-centers/.
More steps for getting a VA-backed home loan
Applying for a COE is only one part of the process for getting a VA-backed home loan. The next steps will depend on the type of loan the spouse is looking to get and on the private bank or mortgage company that is serving as the lender.
The lender will request a VA appraisal (assessment) of the house. An appraisal estimates the house’s market value at the time of inspection. An appraisal isn’t a home inspection or a guarantee of value. The lender reviews the appraisal, the spouse’s credit information, and his or her income, then decides if they should accept the loan application. If they decide to accept the loan application, the lender will work with the applicant to select a title company (or other entity) to close (transfer ownership) on the house.
Loan Options, IRRRL, and Cash-Outs. Read about loan options, Interest Rate Reduction Refinance Loans (IRRRL), and Cash-Out Refinance Loans at:
- https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/,
- https://www.va.gov/housing-assistance/home-loans/loan-types/interest-rate-reduction-loan/, and
- https://www.va.gov/housing-assistance/home-loans/loan-types/cash-out-loan/.
Other The Island News articles on VA Home Loans
You may want to read the following articles from The Island News on VA Home Loans that were published in May of 2022.
- https://yourislandnews.com/how-to-get-va-housing-assistance-some-things-you-need-to-know/
- https://yourislandnews.com/how-to-get-va-housing-assistance-some-things-you-need-to-know-2/
- https://yourislandnews.com/va-housing-assistance-and-some-things-you-need-to-know/
The bottom line
VA Home Loan Programs and buying, refinancing, or selling a home is a major life decision – and complicated. So, make sure you use a credible lender and a Veterans Service Officer (VSO) to help you understand VA Home Loan Programs.
Surviving spouses will go through a private bank, mortgage company, or credit union — not directly with the VA — to get a cash-out refinance loan. Terms and fees may vary, so contact several lenders to check out your options.
Be careful when considering home loan refinance offers. Claims that you can skip payments or get very low-interest rates or other terms that sound too good to be true may be signs of a misleading offer. Surviving spouses should carefully read the VA and the Consumer Financial Protection Bureau Warnings Against Home Loan Refinancing Offers that Sound too Good to be True, which are found at http://bit.ly/3KbvgJO.
Future articles in this series will talk about life insurance options, claims, and beneficiary assistance; pre-need eligibility determination for burial in a VA national cemetery, burial benefits, and memorial items; and more.
Larry Dandridge is a Vietnam War wounded warrior, disabled veteran, ex-Enlisted Infantryman, ex-Warrant Officer Pilot, and retired Lt. Colonel. He is a past Veterans Service Officer, a Patient Adviser at the RHJ VA Hospital, the Fisher House Charleston Good Will Ambassador, and the VP for Veteran Affairs for the local Army Association Chapter. Larry is the author of the award-winning book Blades of Thunder and a contributing free-lance writer with the Island News. Contact him at LDandridge@earthlink.net or 843-276-7164.
